I am trying a new idea of examining strength (or maybe sentiment) of some currencies. Taking the average of the trend scores (as of today) that I am using. No rocket science, just some statistics to be considered before making trade.
A scale from -100 (strong downtrend) to +100 (strong up trend)
YEN
GBP/JPY -55
USD/JPY -55
AUD/JPY +70
CAD/JPY -55
Average : -23.75. Yen scores +23.75 . This is rather flat.
AUSSIE
AUD/USD +60
AUD/JPY +70
AUD/CAD +90
GBP/AUD -75
Average: +73.75. Australian dollar is still in uptrend, though it is not as strong yet.
USD
USD/JPY -55
GBP/USD +55
EUR/USD +80
USD/CAD -70
Average: -65. It shows Dollar is in downtrend, but, it is a weak downtrend at the moment.
I am still going with Aussie dollar, at the moment. Though I would be happier if it gets a little bit stronger now. :o:
Hi Trader Gav. These rates could also tweaked by weighting them according to the importance. For example, for the yen indicator, CAD/JPY would have a low weight because it is of lesser importance to the yen than say USD or AUD (a la the ‘trade-weighted index’).
: )
Hey Caravaggio, that’s a good point. I will incorporate it into my next calculation.
Cheers!
Hi Trader Gav. These rates could also tweaked by weighting them according to the importance. For example, for the yen indicator, CAD/JPY would have a low weight because it is of lesser importance to the yen than say USD or AUD (a la the ‘trade-weighted index’).
: )
Hey Caravaggio, that’s a good point. I will incorporate it into my next calculation.
Cheers!
And then use it as a contra-indicator!
LOL. Yeah, Jay, I was thinking about the same thing before…
But, let’s see how it works out..
And then use it as a contra-indicator!
LOL. Yeah, Jay, I was thinking about the same thing before…
But, let’s see how it works out..